Additional Permitted Subscriptions (APS) for ISAs

Husbands, wives and civil partners can inherit their loved one’s ISA allowance thanks to the launch of APS 1 on 6th April 2015.

If your spouse/civil partner had an ISA and passed away between 3 December 2014 and 5 April 2017, APS can increase your ISA allowance. Even if your spouse/civil partner left the funds in their ISA to someone else, you’ll still inherit the ISA allowance they’ve built up over the years.

It’ll transfer to you as an APS allowance, and will help your money go further by increasing the amount of interest you can earn tax-free. Your allowance will be the value of your spouse/civil partners ISAs when they passed away. This includes interest they'd earned on them up to the date of their death.

In addition, from 6 April 2018, where the ISA investor dies on or after 6 April 2018, any ISA(s) held may remain tax-free (APS2).

The account will cease to be a continuing ISA on the earlier of the following:

  • administration of the deceased's estate is complete
  • the ISA is closed
  • 3 years after the date of death

The APS 2 allowance equals the higher of the value of the ISA(s) at the date of death or the value of the ISA(s) at the date the ISA(s) cease(s) to be continuing ISA.

How do I use my APS allowance with Skipton?

To use your Additional Permitted Subscriptions (APS allowance) with a Skipton Legacy Cash ISA, you just need to fill in the relevant form(s) below. If you’re at all unsure, please call us on 0345 850 1700.

The Legacy Cash ISA only allows APS, not your annual allowance, but as APS does not count as current year’s subscriptions you can open another Cash ISA (as long as you don't have one already in the current tax year).

If you already know how you’d like to use your APS allowance, please see the options below:

If you’d like to use your APS allowance with a Stocks & Shares ISA, your local Skipton Financial Adviser can take you through the options we offer through a range of providers.

Stock market-based investments are not like building society savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise.

Some common questions

As savings specialists, we’re fully up to speed with the APS allowance and Cash ISAs. Below are the answers to a few common questions, but if you’d like to talk things through with us, you’re very welcome to ask at a branch or call us – we’d be glad to help.

Get more details about the APS allowance from the BBA APS leaflet.

No - the APS allowance sites alongside your own annual ISA allowance, which is £20,000 in the 2018/19 tax year. At Skipton, we offer a specific Legacy Cash ISA for the sole purpose of investing your APS allowance. You can still invest your annual allowance in any of our other Cash ISAs.

No. You can make unlimited payments up to the APS value using either inherited money or funds from elsewhere. You can use your APS allowance for up to three years from the date of your spouse or civil partner's death. Payments to the Legacy ISA must be made by cheque and you need to complete the Additional Subscription Eligibility Declaration form every time you do this. Please remember, once you've chosen where to invest your APS allowance, you cannot transfer it to another provider at a later date.

If your spouse or civil partner died on or after 6 April 2018 and you choose to use your APS allowance based on the value at the date of their death, you can't later change your mind and use the value when it ceases to be a continuing ISA.

You'll still be entitled to an APS allowance because this is calculated based on the amount your spouse has built up in tax-free entitlements, regardless of whether or not they've left you the savings. You don't have to use money from your loved one's ISA against your APS allowance; it can come from elsewhere.

No - it can ony be used towards either a Cash ISA or Stocks and Shares ISA. At Skipton, we offer a Legacy Cash ISA for Cash ISA APS investments as Skipton does not offer Stocks and Shares ISAs, but your local Skipton Financial Adviser may be able to assist you with this.

If you are between 16 and under 18, you can only use your APS allowance in a Cash ISA. Once you are 18, it can used against a Stocks and Shares ISAs.

You are still entitled to an APS allowance if your husband, wife or civil partner has died. But, regrettably we cannot offer you a savings accounts because you must be a UK resident. You'll need to transfer your APS allowance to a bank or building society that allows non-UK customers.

Need help?

Phone Call Skipton Direct 0345 850 1755

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